COST CUTTING

Governors' salaries to be cut in an austerity measures

In Summary
  • The agency also want salaries, allowances, mileage, insurance and gratuity for Speakers and Members of County Assemblies (MCAs) slashed
  • Perks to government employees were found to have grown over time, accounting for about 40 per cent of the public wage bill. 
Chairlady commission on revenue allocation Jane Kiringai
Chairlady commission on revenue allocation Jane Kiringai
Image: EZEKIEL AMING'A

The Commission on Revenue Allocation (CRA) has capped counties’ annual recurrent expenditure at Sh59.9 billion for the financial year starting July 1 as the state's austerity gear gathers steam.

The revenue agency , in recommendations to the Senate issued an additional allocation of Sh5.2 billion specifically for development expenditure while retaining recurrent expenditure at the 2019/20 levels.

''We propose a nil increase to the provisions for recurrent expenditure. 'This is in line with the consolidation stance taken by the government as a result of the contracting fiscal space,'' CRA said.

 

The recommendations, if approved by the Senate will see the executive arm of county governments receive Sh33.2 billion while assemblies will get Sh33.2 billion for the financial year 2020/21.

The agency for instance want salaries, allowances, mileage, insurance and gratuity for Speakers and Members of County Assemblies (MCAs) slashed as part of measures to lower high wage bill in couPerks to government employees were found to have grown over time, accounting for about 40 per cent of the public wage bill. nties.

Salaries , allowances, insurance and pension for County Assembly staff as well as that of County Assembly Service Board and Secretariat have been earmarked for a cut.

Others targeted includes oversight and public participation budget, provision for the training of Assemblies and the budget for operationalisation of an Audit Committees.

The Jane Kiringai led agency is also targeting salaries and allowances for governors, deputies and their staff as well as training and maintenance budgets.

Currently, governors and their deputies are earning a basic pay of lightly above Sh580,000 which when added to numerous allowances earned amounts to a gross pay of at least Sh1.1 million per month.

To help counties streamline their recurrent expenditures, CRA has recommended expenditure concealing for all 47 counties in the countries, with Nairobi leading at Sh759.5 million each for the assembly and executive , followed by Kiambu at Sh673.3 million.

Lamu and Isiolo will receive the least recurrent budget both for the legislature and executive at Sh463,.71 million each.

In November, Kenya held a three days conference to seek ways of cutting the ballooning wage bill  which was tracked at  at Sh795 billion in last financial year. 

Perks to government employees were found to have grown over time, accounting for about 40 per cent of the public wage bill.